Which of the following is an effect caused by capital flight?
A) It increases the need for domestic investment holdings.
B) It decreases the ability of the nation to service debt and pay for imports.
C) It reduces harmful currency restrictions.
D) It decreases the nation's supply of hard currencies.
Question 2
Against Betty's judgment, her boss decides to market Frankfurter's beef sausages in the town of Xunagshi, believing that it would rake in a huge profit. Which of the following, if true, would prove that her boss's decision is a bad one?
A) There are very few vegetarians in Xunagshi.
B) Due to their exposure to the Western culture, the youth of Xunagshi is more open to fast food than the town elders.
C) The traditional dishes of Xunagshi are more expensive than the beef sausages.
D) Xunagshi has a large Hindu population, all of whom are forbidden from eating beef.
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